A contract is derecognised only when it is extinguished, meaning the obligation it sets out expires, is discharged or is cancelled, or when a condition in paragraph 72 is met; buying reinsurance does not extinguish the contract it covers. When a contract leaves a group, the fulfilment cash flows are adjusted to take out the risk adjustment and the present value of cash flows attributable to the rights and obligations removed, the CSM is adjusted for that change as far as 44(c) and 45(c) require, and the number of coverage units is reduced. Where the contract passes to a third party, or is replaced under paragraph 72, the CSM is adjusted instead by the difference between the change in carrying amount and either the premium the third party charges or the premium the entity itself would have asked for the new contract on the modification date, less any extra premium charged; the new contract is then measured as though that premium had been received.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.